At the end of the previous season, head coach Jupp Heynckes left his position to return to his native Germany as manager of Schalke 04.
[2] B team coach Ernesto Valverde, who also represented Athletic during his playing career, was promoted in his place.
Valverde's first season in charge saw a successful La Liga campaign, as Bilbao finished in fifth place and qualified for the 2004–05 UEFA Cup.
[3][4] This constituted their best league placing and first European qualification for six years.
Athletic were somewhat less successful in the Copa del Rey, suffering a humiliating defeat in their first match at the hands of Segunda División B side Gimnástica de Torrelavega.